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Cord-cutting Report: Streaming Services Will Be 25% of the Pay-TV market by 2023 (fastcompany.com)

UBS is increasing its outlook for streaming TV services such as Sling TV and DirecTV Now, estimating that such services will make up 25% of the pay-TV market in five years. Meanwhile, USB expects traditional TV subscriptions to decline 4.1% over the next year alone. From the report: Here are some other takeaways from UBS's report: Although Google hasn't disclosed subscriber numbers for YouTube TV, UBS estimates that the service has 750,000 subscribers after one year. That would put it just behind Hulu (800,000 subscribers), which launched around the same time. Sling TV remains in the lead with 2.3 million subscribers after three years, and DirecTV Now is catching up with 1.5 million subscribers in 16 months. PlayStation Vue still has just 700,000 subscribers after three years. A survey by UBS found that one in three respondents were likely or very likely to subscribe to a streaming TV bundle. (Hulu with Live TV and YouTube TV were the top two potential picks among these respondents, suggesting that they'll play catch up with their rivals over time.)

65 comments

  1. Cord cutting is the dumbest term by Anonymous Coward · · Score: 3, Interesting

    Still have an internet connection to the cable company?

    1. Re:Cord cutting is the dumbest term by Anonymous Coward · · Score: 0

      And yet we all know that the term refers specifically to TV services. No one says you have to buy internet from the cable company. They just tend to be the most economical choice for most homeowners.

    2. Re:Cord cutting is the dumbest term by omnichad · · Score: 1

      That's not cord as in the physical cable, it's cord as in umbilical. People are so dependent on pay TV that it seems to some like cutting off a lifeline.

    3. Re:Cord cutting is the dumbest term by Anonymous Coward · · Score: 0

      Last time I tried this, it was like $50 for internet + $50 for TV, -OR- $100 for just internet and no TV. So what's the point?

      Rant: Comcast now lists Netflix titles as "Free to me" even if you don't have Netflix. So trying to find a movie that's actually free is near to impossible. Trying to explain that to my horde of screaming little kids makes me want to find whoever is responsible and kick him in the crotch so hard that he coughs up his own testicles.

    4. Re:Cord cutting is the dumbest term by olsmeister · · Score: 1

      by economical do you mean only?

    5. Re:Cord cutting is the dumbest term by Anonymous Coward · · Score: 0

      That's not cord as in the physical cable, it's cord as in umbilical. People are so dependent on pay TV that it seems to some like cutting off a lifeline.

      In that sense, switching from cable to Internet plus one or more streaming services is anything but "cord cutting", no? You're still hooked on cord, you just switched dealers.

    6. Re:Cord cutting is the dumbest term by omnichad · · Score: 1

      Depends. I have only one inexpensive streaming service (Amazon doesn't count because I don't use it at all) and get most of my entertainment from free sources like antenna. Therefore, I don't really consider myself hooked.

      But otherwise, I agree with you. Bragging that you're a cord cutter while having subscriptions to 3+ pay TV services is just silly.

    7. Re:Cord cutting is the dumbest term by Anonymous Coward · · Score: 0

      I was in for 170.00 internet plus TV plus 15.00 each for boxes and modem Spectrum.
      Now 70.00 100 down no boxes my own modem and 7.99 1 connection Netflix.
      and 2 connection Hulu 7.99 Roku box rocks Sometimes stuff you need code sign in just works.
      86.00 bucks all in.

      And Kodi fuck the world.

    8. Re:Cord cutting is the dumbest term by swillden · · Score: 1

      Still have an internet connection to the cable company?

      Well, my Internet connection is through a microwave relay. There's a cord from the microwave antenna to my router, I suppose.

      --
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    9. Re:Cord cutting is the dumbest term by Anonymous Coward · · Score: 0

      I have DSL.

      Why, yes, my name is Slowski. How did you know?

    10. Re:Cord cutting is the dumbest term by Bigbutt · · Score: 1

      Nope. Hi speed WiFi. 20/7 speeds. No Netflix, no Hulu, no YouTube Red or TV, no Amazon TV. I watch YouTube videos from time to time, music videos, Russian car crash videos, instructional videos. I have a few shows I enjoy like Walking Dead and Big Bang Thoery, and wait for the DVD release or pick up the old shows I liked from back in the day.

      [John]

      --
      Shit better not happen!
  2. Priced Out by Zorro · · Score: 1

    $200 Comcast bill is what made me end the Cable Box.

    If it was at a reasonable price I wouldn't have bothered.

    1. Re:Priced Out by Cro+Magnon · · Score: 1

      Absolutely this!! I had no complaint with Spectrum Warner - until it passed the $200 mark.

      --
      Slow down, cowboy! It has been 4 hours since you last posted. You must wait another few hours.
    2. Re:Priced Out by Rick+Schumann · · Score: 1

      Mine was half that almost 10 years ago and I still said "fuck this" and put an antenna on the roof. Now I wish I could cut down the $60 internet bill to half of what it is, too.

    3. Re:Priced Out by Anonymous Coward · · Score: 0

      It creeps up, like the boiling-a-frog analogy.

      Then one day, you're like, "Holy crap! My bill is almost $300!!"

    4. Re:Priced Out by Anonymous Coward · · Score: 0

      Same here, Comcast went to over $200 a month. Switched to Sonic.NET for Internet plus phone at $78, Netflix at $14, and Sling.TV at $40 so I'm up to $132 already.

    5. Re:Priced Out by jwhyche · · Score: 2

      Yup, pulled this plug a month ago. I was paying almost $200 for a fat ass cable TV connection, landline phone, and capped internet. This was in addition to my subscription services of netflix, hulu, and curiosity stream.

      The landline phone doesn't even have phone hooked up to it. As for the cable connection, we had unplugged the cable box 6 months ago and never bothered to hook it back up. The rest of my family watches netflix, hulu, or youtube. and I just watch the curiosity stream and youtube.

      So I dumped the cable TV and phone, got a truly unlimited internet connection, no datacap, for $93 a month and some change.

      AT&T just wired my apartment for fiber so now comcat has some competition. AT&T is not really any better than comcast but now I have a option to actually get both to bid against each other.

      --
      I read at +2. If your post doesn't reach that level I will not see or respond to it.
    6. Re:Priced Out by Anonymous Coward · · Score: 0

      Oh please. Basic Cable is $40 bucks tops.

  3. package deal by PopeRatzo · · Score: 4, Insightful

    "Cord cutting" will not overtake cable as long as the only way to get a reasonable price for internet is to "bundle" your service with pay TV. And it's only going to get a lot worse with all the big mergers that the corrupt Trump administration is handing out to corporations.

    You can cut all the cords you want, but you're still going to be paying a cable bill, even if you only watch Netflix and Hulu. Two companies providing all the internet bandwidth and TV content will never be anything like "competition".

    --
    You are welcome on my lawn.
    1. Re:package deal by omnichad · · Score: 1

      If you have DSL in your home market that isn't AT&T (who also owns pay TV services), that will keep the prices lower than they would be otherwise.

      I'm paying far less for Internet only than I would for Internet plus basic pay TV with my cable provider. And I actually live in an AT&T market. You can add in the cost of Netflix, but I would have that even if I still had pay TV. Antennas are cheap and they still work for the big five networks.

    2. Re:package deal by Gilgaron · · Score: 1

      If you have two cable companies in your area it can work out, but yes, where they have a monopoly I understand it is almost pointless. Here the smaller of the cable companies actually caters to cord cutters

    3. Re:package deal by Rick+Schumann · · Score: 1

      You're not wrong. But I'd never go back to cable TV, it's shit and not even worth it if it was free. I don't 'stream' anything either, I think that's a trap, too. Hell, I'd take half the broadband bandwidth if I could cut the internet bill in half, too.

    4. Re:package deal by Joe_Dragon · · Score: 1

      Some areas have 2 cable cos + telco vrad / fiber to the home.

    5. Re:package deal by EvilSS · · Score: 1

      I've yet to see a TV/Internet bundle in my area cheaper than internet alone. If you are only looking at it on a price vs price basis, then yea. But for me, I could give a shit about the price as much as having to not watch commercials (which take up 1/3 of prime time viewing). That and being able to watch what I want when I want (and not just current episode stuff I could DVR, but back seasons as well) is worth a price premium over cable TV.

      --
      I browse on +1 so AC's need not respond, I won't see it.
  4. Customers want options by OffTheLip · · Score: 2

    The cable cartel has been dictating what customers get for too long and streaming services offer a small step forward. Too bad the pipes are still controlled by the cartel,

    1. Re:Customers want options by Anonymous Coward · · Score: 0

      The streaming services seem to be working toward the end game a little quickly for my tastes. If you have to buy a separate service for every show you want to see, it'll end up worse than cable.

      I keep thinking there has to be a happy medium between funneling money to the mega-corps and letting the consumer have some choices. Maybe charge by program after the first episode or something? $3 nets you a season for one viewing, with an add-on $10 if you want to "own" it and watch it over and over? The content owners would probably net more money and get REAL feedback about which shows are worth producing.

    2. Re:Customers want options by jwhyche · · Score: 2

      The streaming services have one big advantage that nobody is talking about. No contracts. I was locked into a 2 year contract with comast for tv, phone, and internet service. But with a service like psvue or youtube tv if a series comes out that I actually want to watch I can just sign up and pay for that season. Then just drop it till next season.

      --
      I read at +2. If your post doesn't reach that level I will not see or respond to it.
  5. 2020 With xfinity TV Netflix is cap free* by Joe_Dragon · · Score: 2

    With no network neutrality things can get bad.

    2020 With xfinity TV Netflix is cap free*

    *free on comcast hardware only outlet fees apply.

    In games well with our super star entertainment package get the best speeds with steam / ps / x-box and more# includes unlimited internet add on.

    Want to stream to youtube, twitch and more just add on our upload king add on with up to 1GB speeds and no caps act now and get your choice of HBO, Starz, MAX, or SHOWTIME*.

    #starter tv required rsn and broadcast tv fees may apply

    *4K requires 4K fee and 4K TVBox

    1. Re:2020 With xfinity TV Netflix is cap free* by Anonymous Coward · · Score: 0

      Who needs cable TV when anybody can look at my great YouTube channel?

      I find AmazonTM the gretest thing since sliced bread and helps taking care of my health at retirement with the Amazon long tail revenue streams!

      All you need to do is find a website with a permissive TOS, say, Slashdot, create a Python script to scrape your own comments, sprinkle Amazon affiliate links in various posts, and then re-post past links whenever possible. You can even make video of yourself going to pick up AmazonTM parcel at the convenience store and post it on your youtube channel for more redundant revenue streams.

      They also have a wide supply, the best of latte and clif/power bars at the best cost, espicially if you make a friend buy them for you with your own affiliate link!

      Also, I still use my iPhone 6s and reduce my monthly bill from $80 to $50. As a phone and a video camera, the iPhone 6s isn't obsolete and I use it to make my videos on youtube. As a Sprint very special customer for 20+ years, Sprint will always give me a new iPhone for free if I decide to stop using the 6s as a phone in the next several years.

      Bonus: get some silver coins, view recommendations on my special Youtube channel dedicated to the topic! They constitute a fail-safe insurance strategy for your retirement!

  6. UBS or USB? by Calydor · · Score: 0

    As the title says, you'd think the editors could keep track of the difference between UBS and USB.

    Oh, who am I kidding.

    Besides, as a non-American, is the UBS acronym something people should just know what stands for? Useless Bitchy Surveys?

    --
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    1. Re:UBS or USB? by Anonymous Coward · · Score: 0

      UBS is a Swiss bank, so not a particularly American acronym...

    2. Re:UBS or USB? by _merlin · · Score: 1

      UBS is a large Swiss bank, and an investment powerhouse. There's nothing American about them. You'd have to be living under a rock not to know who they are.

    3. Re:UBS or USB? by Calydor · · Score: 1

      Unfortunately I don't work in the banking and investment industry, so no, I honestly haven't heard about them. What does a bank have to do with TV watching habits? It seems somewhat non-intuitive to look for bank names in the context of this article.

      --
      -=This sig has nothing to do with my comment. Move along now=-
    4. Re:UBS or USB? by _merlin · · Score: 1

      Well, part of their business is to provide investment services and advice, and this involves market analytics. They're betting the cable companies are going to continue to lose their grasp on eyeballs. It's more or less saying, "FWIW we think the cable TV companies aren't going to be losing eyeballs to streaming services at least this fast - consider that when deciding where to invest your money."

  7. USB expects != UB(S ex)pects by Anonymous Coward · · Score: 0

    Typo prevents the planned subliminal "s ex" in the summary. Also: USB cord cutting! Oh, the humanity!

  8. It could be worse... by Anonymous Coward · · Score: 0

    My building has an HOA that "includes" TV and internet, pretty good internet, but requires TV (with Starz, who does that?). Here's the rub: we don't have "cable tv" we have "IP TV" over fiber and they are NOT subject to the FCC rules for Cable TV providers! Clearly the rules were meant to apply to this entire industry of bringing broadcast content into homes, but the wording doesn't match so they have free reign, like the cable companies of old.

  9. DID cutting when?? by Anonymous Coward · · Score: 0

    That system is so stupid. Time for something other than phone numbers to become widespread.

  10. It's not really even "cord cutting" anymore really by Anonymous Coward · · Score: 1

    The cable companies and movie makers have basically all decided to make their own shitty services that unless you're the kind of person who literally watches stuff from maybe 1-2 different media corporations basically ends up being cable all over again.

    ISP Costs + Hulu (which still shows ads unless you pay even more) + Netflix + Any particular movie channel + Amazon + etc etc doesn't really end up adding up to much less than a larger cable package, and it sure as fuck won't stay that way as all these monstrously huge companies consolidate. They're going to get their pound of flesh from you one way or another.

    The kind of nerd that gets particularly owned in this are anime nerds. Anime streaming is getting pretty big and due to it being foreign media and due to how fans consume it (fans of anything popular are used to basically simultaneous sub releases, and some distributors are now doing simuldubs) all the streaming services snap up exclusive rights because they end up paying for the subbing/dubbing. That's before you get to how insanely bad most of the services are at handling it.

    Netflix has no idea what anime even is apparently or what people who watch new series want because they'll literally squat on a series until the whole run is over (meaning months late) so they can do the Netflix thing where they release the entire series at once. Crunchyroll despite being staffed almost entirely by former fansubbers and former pirates cannot provide a consistent quality product- their servers fall over when they get anything really popular, their encoding is shit (shocking among weeb pirates, who are the only people on earth who give a shit about crazy high-quality video encoding), and the website/player's feature set is straight out of 2001. Amazon tried charging even more money over their standard streaming fee and their interface is fucking garbage.

  11. Re:No streaming services in Prison by Anonymous Coward · · Score: 0

    it's as if slashdot is occupied by a bunch of 9 year old children. nanny nanny poo poo

  12. Re: No streaming services in Prison by Anonymous Coward · · Score: 0

    Fake TV news sounds like a bunch of children with their Russian meddling nonsense. Streaming helps cut that cord so I only have to listen to reliable sources of information like RT dot com.

    Enough of CNN's boolshiat already!

  13. Re:It's not really even "cord cutting" anymore rea by Anonymous Coward · · Score: 1

    grow up and stop watching foreign cartoons just because there are boobies in them, you pervert.

  14. Re:No streaming services in Prison by Anonymous Coward · · Score: 0

    And the Trump supporters sound any better?

  15. Re:It's not really even "cord cutting" anymore rea by Anonymous Coward · · Score: 0

    Cowboy Bebop is one of the greatest works of art in history, Dork!

  16. IQ test by ole_timer · · Score: 1

    the lower your IQ the more you tend to pay overall for tv, internet, bundles, etc. Rome had their coliseums - we have our "cord cutters" - entertainment is still entertainment.

    --
    nothing to see here - move along
  17. I only have one choice: AT&T by jetkust · · Score: 1

    And this is why I hate these companies (ok just one reason). AT&T is my only choice for wired internet. Go to uverse website. 3 options, all bundles, all trial prices, all with forced HBO trials. Scroll down to bottom of page and click "High Speed Internet". 3 new offers, all bundles. Select "UVerse Internet". 3 bundle offers. Select "Fiber Internet", 3 more bundle offers. So basically they want me to sign up for 3 months of a fixed price to a service that I mostly don't want, and after that charge me $26 extra for HBO which I bet they'll likely have some kind of "problem" cancelling, and then after 12 months basically they'll just charge me whatever they want to charge me and if I don't pay they'll send it to collections where some random guy with a heavy accent will call me every couple hours asking for my credit card info. Actually it wouldn't surprise me if this happens before the trail period is up.

    So yea, I'm thinking that's probably still a no for me.

    1. Re: I only have one choice: AT&T by Anonymous Coward · · Score: 0

      I just dumped AT&T Uverse internet for toast.net Same internet, but they are a reseller. I didnâ(TM)t get a new subscriber deal, but itâ(TM)s internet onlyâ"no phoneâ"and no caps for the same price I was paying for the internet portion of my bill.

  18. It's not cord cutting by Tough+Love · · Score: 2

    It's not cord cutting, it's just tying a new cord. Death to network TV and all hail your new Netflix/Youtube masters!

    --
    When all you have is a hammer, every problem starts to look like a thumb.
    1. Re:It's not cord cutting by Anonymous Coward · · Score: 0

      Exactly. "cord cutting" has always been an inaccurate, misleading term. The point of "cord cutting" was not to eliminate the cable but to stop paying for the traditional media. Regrettably, that's where the providers' markups were so they are fighting it.

      You are not a cord cutter if you sign up for Youtube TV, Sling, Hulu, Roku or any of the other new paid aggregators. Aggregation is just an attempt to return to the old bundling and the control it provides allowing them to brag about providing 100s of "channels" that deliver nothing for one "low" price.

    2. Re:It's not cord cutting by Tough+Love · · Score: 1

      Aggregation is just an attempt to return to the old bundling and the control it provides allowing them to brag about providing 100s of "channels" that deliver nothing for one "low" price.

      And to perpetuate those precious ratings, particularly prime time and young adult demographic, now made up of feckless millennials.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    3. Re:It's not cord cutting by Anonymous Coward · · Score: 0

      This is the most tired boogeyman trope in existence. Millennials live within the confines of a modern society that they had very little say in constructing. If you don't like millennial views, maybe ask how they came to see the world in such a different way than you do. Was it how they were raised? Some societal change in their formative years? Millennials are just now becoming an age where they have a significant impact on society - and they're doing so with the values that they were raised with. Blame the previous generation for the conditions that formed this new breed of feckless individuals.

      Or, y'know, just stop demonizing a generic age group.

  19. I don't believe it by AlanBDee · · Score: 1

    I'm not buying it, as in I don't believe that this is a true representation of where the market is headed. I'm sure the cable companies would like it to go this way but my experience is that streaming TV bundles like Sling TV are not better then cable with a DVR.

    The people have already spoken with the huge number of Netflix subscribers. We like to pick a show and watch that show without commercials. Live events can be streamed through YouTube, Facebook or ESPN. I don't want a bundle of streamed "channels" with predetermined shows with commercials, that I can't skip, for twice the money. Netflix, Hulu+ (no commercials), YouTube, HBO Now, and Amazon Prime Video seem to be the future. Everyone else will be left behind.

    1. Re:I don't believe it by cayenne8 · · Score: 1

      Sling TV are not better then cable with a DVR.

      I went with Playstaton VUE because it has a built in DVR capability from the get go.

      I thought I saw where SlingTV and DIRECTTV's streaming services both were adding DVR capability?

      I bought a TIVO, lifetime subscription built in for my OTA recordings...between that, PSVUE, Netflix and my Amazon PRIME that I get with my PRIME....I'm more than set and I never miss a program I wanna watch....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  20. Terrible by Anonymous Coward · · Score: 0

    Cord cutting is terrible.

    Netflix offers too much choice.

    TV is nicely portioned out for you. No binging. Having to wait for something build patience. Paying more for it means it's quality.

    More quality time in front of the TV, watching quality programs, carefully selected and curated to promote good, wholesome American values.

    Netflix has all that foreign crap, why pay for that? Sure it's all you can watch, when you want to watch it, how you want to watch it, but it's un-American crap!

    Come back to cable, and come back to wholesome, American values.

  21. Then I must be a genius... by Anonymous Coward · · Score: 0

    ..., a Donald Trump level genius. I torrent everything I want to watch via free to me WiFi.

  22. This seems like another lowball esitmate by brunes69 · · Score: 2

    This to me seems like another lowball estimate from an industry that doesn't seem to have an appreciation for how fast things change nowadays.

    I would expect this to be somewhere much closer to 50% based on what I see. Every person I know under 40 cut the cord a long time ago. The only people who hold out are sports junkies, and even they are dropping like flies now that you can get legal season pass streaming options for some of these.

    1. Re:This seems like another lowball esitmate by johnsie · · Score: 1

      I agree. Most people I know are moving over to TV sticks and subscription services like Amazon or Netflix. Oldskool tv will disappear fast.

    2. Re:This seems like another lowball esitmate by Anonymous Coward · · Score: 0

      I'm well over 40. I haven't "cut the cord" because internet bundled with TV is cheaper than just internet. However, I essentially never use the coax to watch cable tv. Over-the-air TV is better (HD broadcasts, but cable charges extra for HD!), in those rare occasions like breaking news when OTA is useful.

  23. I love my DirecTV Now by Anonymous Coward · · Score: 0

    Sick to death of my cable company (Cox). Saw an ad for a free AppleTV 4K if you pre-paid for 3 months of DirectTV now service at $35/mo. I figured - hell! At least I get a $160 apple TV for $105 so pulled the trigger. So far so good. Has the channels I want, it is portable (Staying out of town at an AirBNB with no cable, but TV and internet and it works great here). The DVR stuff is still in Beta and does have bugs, but if they keep the $35/mo with the DVR service and they fix it, I am sold. Cox sucks Cox! Called Cox to change my plan (after a surprise $180 bill - no premium channels) and they put me on a limited package. Our Vegas Golden Knights were in the playoffs at the time, and what was one of the channels Cox cut? NBC Sports Network. While our guys were in the playoffs. Absolute idiocy! Thankfully, I had the DirecTV now which has NBCSN at the $35 and was able to watch all of the games. Hope the helps

  24. A new beginning by Anonymous Coward · · Score: 0

    There are cord-cutters now. With the way TV programming is degrading, the phrase 'TV-smashers' is going to be replacing the phrase 'cord-cutters'. Everything goes to shit, until it's ultimately destroyed.

  25. UBS? by antdude · · Score: 1

    Did that raccoon report that? :P

    --
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  26. Assuming net mercantility vs neutrality? by rjthomas61 · · Score: 1

    Does this particular divination state assumptions about cashwidth? (Netola? Information toll highway?)

    --
    Take off, every Hoser
  27. 2023 = Real Soon Now by Anonymous Coward · · Score: 0

    Is this a story or an advertisement?

  28. Re:No streaming services in Prison by Anonymous Coward · · Score: 0

    Who cares what the president achieves? We make fun of his hair because the TV told us to.

  29. Only 25% by Anonymous Coward · · Score: 0

    Only 25%?

    What on Earth will the rest be?

    There can't be that many old people in nursing homes who still want to rush home to watch some garbage on a predetermined schedule.